The Kenya Commercial Bank (KCB<\/span>) group Board of Directors has approved an additional Sh1.9<\/span> billion capital injection to support the growth of the bank\u2019s struggling regional subsidiaries.<\/strong><\/p>\n <\/p>\n <\/strong><\/p>\n Group chairman Peter Muthoka<\/span> said the increased investment is meant to help the subsidiaries speed up their financial performance, and yield better returns to the shareholders.<\/p>\n The beneficiaries of the new funding include KCB<\/span> Uganda (Sh1.1<\/span> billion), KCB<\/span> Tanzania (Sh225<\/span> million) and KCB<\/span> Rwanda (Sh557<\/span> million). With the exception of KCB<\/span> Sudan, these subsidiaries returned an accumulated net loss of Sh259<\/span> million last year, diluting the Group\u2019s overall profitability.<\/p>\n Performed better<\/strong><\/p>\n <\/p>\n <\/strong><\/p>\n KCB<\/span> Uganda reported a loss of Sh409<\/span> million, while KCB<\/span> Tanzania and KCB<\/span> Rwanda registered losses of Sh111<\/span> million, and Sh318<\/span> million, respectively. KCB<\/span> Sudan, however, performed better than expected, returning a profit before tax (PBT<\/span>) of Sh581<\/span> million.<\/p>\n “KCB<\/span> Sudan reported a good profit last year, and is poised for better returns in 2011 whereas KCB<\/span> Rwanda and KCB<\/span> Uganda are moving closer to profit making. KCB<\/span> Tanzania is now stable, and should become more profitable going forwards,” said Muthoka<\/span>. He, however, said all regional subsidiaries would be expected to break- even this year.<\/p>\n Muthoka<\/span> also said the KCB<\/span> board would be reviewing the operations of each subsidiary as it seeks the right business model which delivers increased returns to the investors.<\/p>\n “The board has agreed to increase investment in the subsidiaries this year to enable them accelerate their financial performance,” Muthoka<\/span> told shareholders during the bank\u2019s 40th annual general meeting (AGM<\/span>) in Nairobi, yesterday. Muthoka<\/span> said the board has also approved wide-ranging business <\/p><\/p>\n","protected":false},"excerpt":{"rendered":" The Kenya Commercial Bank (KCB) group Board of Directors has approved an additional Sh1.9 billion capital injection to support the growth of the bank\u2019s struggling regional subsidiaries. Group chairman Peter Muthoka said the increased investment is meant to help the subsidiaries speed up their financial performance, and yield better returns to the shareholders. The beneficiaries […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[75],"byline":[290],"hashtag":[],"class_list":["post-139","post","type-post","status-publish","format-standard","hentry","category-business","tag-homenews","byline-standard-team"],"bylines":[{"id":290,"name":"Standard Team","slug":"standard-team","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null}],"contributors":[{"id":290,"name":"Standard Team","slug":"standard-team","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null}],"featured_image":null,"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=139"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/139\/revisions"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=139"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=139"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}